PMI

Philip Morris International Shifts Entire Capacity of Its Cigarette Factory in Greece to Smoke-Free Products

Philip Morris International Inc. (PMI) (NYSE: PM) announced today that
the factory of its Greek affiliate (Papastratos) in Aspropyrgos, has
ceased cigarette production and is now exclusively producing HEETS
,
the tobacco units used with IQOS
, the company’s most advanced
smoke-free product. This first full conversion of a cigarette factory is
a landmark step in our vision of a smoke-free future where people who
smoke switch from the most harmful form of nicotine consumption –
cigarettes – to scientifically substantiated smoke-free alternatives.

The EUR 300 million investment included the construction of three new
buildings and the replacement of cigarette production lines with
high-tech facilities capable of producing 10,000 smoke-free tobacco
units per minute. The conversion of the factory started in August 2017.
The facility is expected to be fully operational by the end of 2018 and
will create 400 new jobs.

André Calantzopoulos, PMI’s Chief Executive Officer said: “This is a
historic day for our company. Papastratos is the first of our factories
to end cigarette production and fully shift to manufacturing our
smoke-free alternatives.” He added: “We will continue to convert
existing sites and invest in new facilities to answer global adult
smoker demand for better alternatives to cigarettes. We made a
commitment to provide all people who would otherwise continue smoking
with potentially less harmful products. The momentum around this
revolutionary change for the benefit of the world’s 1.1 billion smokers,
public health and society at large is growing, and we will continue
working towards a smoke-free future.”

Along with our plant near Bologna, Italy, Papastratos is our company’s
second facility fully dedicated to manufacturing smoke-free products. We
have also announced plans to either fully or partially transform our
cigarette factories in Korea, Romania and Russia.

Since 2008, we have invested more than USD 4.5 billion in scientific
research, product and commercial development, and production capacity
related to IQOS
and other smoke-free products. In 2017, over 70%
of our global R&D expenditure and over 30% of our global commercial
expenditure was allocated to smoke-free products.

We estimate that at the end of January 2018, nearly 5 million adult
consumers around the world have already stopped smoking and switched to IQOS
.
Our ambition is that all those who would otherwise continue smoking
abandon cigarettes and switch completely to scientifically substantiated
smoke-free products as soon as possible. Appropriate regulatory policies
and decisions can substantially accelerate the speed and magnitude of
this historic change.

Philip Morris International: Who We Are

We are a leading international tobacco company engaged in the
manufacture and sale of cigarettes and other nicotine-containing
products in markets outside the United States of America. We’re building
our future on smoke-free products that are a much better consumer choice
than continuing to smoke cigarettes. Through multidisciplinary
capabilities in product development, state-of-the-art facilities and
scientific substantiation, we aim to ensure that our smoke-free products
meet adult consumer preferences and rigorous regulatory requirements.
Our vision is that these products ultimately replace cigarettes to the
benefit of adult smokers, society, our company and our shareholders. For
more information, see our PMI
and PMIScience
websites.